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Brief of diving:
- Google plans to increase capital investments to $ 75 million this year to try to expand its AI and cloud capacity, said CEO Sundar Pichai on Tuesday in the company’s fourth quarter results report. The company spent $ 52.5 billion on capital expenses by 2024.
- Google will direct most of its growing capex to relieve the bottlenecks of capacity through infrastructure updates, including cloud servers and data centers, said CFO Anthkenazi during a Tuesday’s earnings call.
- “We left the year with the most demanding capacity available,” Ashkenazi said. “We are in a demanding situation of the adjusted offer, working very hard to provide more online capacity.”
Divide vision:
Massive AI infrastructure investments are new cloud normality. Capacity restrictions are also a common topic.
In January, Microsoft promised to spend $ 80 million in AI -skill centers during its current fiscal exercise, and said that it was affected by the scarcity of power and capacity during the last quarter of last year.
Amazon, who reports on Thursday, was expected to spend $ 75 million on capital investments last year, most of which was to “support the growing need for technological infrastructure,” said CFO. Brian Olsavsky during a October results call.
“We are more demanding that we could fulfill if we had even more capacity,” said Amazon’s CEO Andy Jassy during the call. “Currently, almost everyone has less capacity than they have, and they are really the chips that are the areas where companies could use the most offers.”
Pichai earned the data center efficiency by deploying TPU chips on Google and HyperComputer’s architecture on Tuesday. “We develop all the components of our pile of technology, including hardware, compilers, models and products,” he said. “This approach allows us to promote efficiency at all levels, from training and provision to developers’ productivity.”
As the data center was completed, Google Cloud saw that the fourth quarter revenue grew 30% year -on -year up to $ 12 billion. Cloud segment revenue throughout the year increased 31% to $ 43.4 billion.
The company plans to invest about $ 16,000 and $ 18 billion on capital expenses during the first quarter, according to Ashkenazi.
